TY - JOUR
T1 - Do Environmental Performance and Environmental Management Have a Direct Effect on Firm Value?
AU - SOEDJATMIKO, Soedjatmiko
AU - TJAHJADI, Bambang
AU - SOEWARNO, Noorlailie
N1 - Publisher Copyright:
© 2021. This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited. All rights reserved.
PY - 2021
Y1 - 2021
N2 - This paper investigates the effect of environmental performance and environmental management on firm value using financial performance as mediation variable. There are still inconsistencies in research on environmental performance and environmental management and their impact on company value. This research used a quantitative approach involving secondary data. The variables used are environmental performance, environmental management, company financial performance, and company value. Multiple regression was used because it allowed the researchers to examine the relationship of each variable contained in the research framework by describing all of the direct effects (non-mediated effects) and the indirect effects of the research variables. The research sample consisted of 144 manufacturing companies listed on the Indonesia Stock Exchange from 2012 to 2017. Statistically, this study found that there was no direct effect that had a significant impact on environmental performance and firm value, and found that there is a significant direct effect of environmental management variables on firm value. Improved environmental management by the company is proven to increase the value of the company directly. This paper found that, not only does an increase in stakeholder trust happen when a company increases its environmental awareness, but there is also an increase in the financial aspects of the company.
AB - This paper investigates the effect of environmental performance and environmental management on firm value using financial performance as mediation variable. There are still inconsistencies in research on environmental performance and environmental management and their impact on company value. This research used a quantitative approach involving secondary data. The variables used are environmental performance, environmental management, company financial performance, and company value. Multiple regression was used because it allowed the researchers to examine the relationship of each variable contained in the research framework by describing all of the direct effects (non-mediated effects) and the indirect effects of the research variables. The research sample consisted of 144 manufacturing companies listed on the Indonesia Stock Exchange from 2012 to 2017. Statistically, this study found that there was no direct effect that had a significant impact on environmental performance and firm value, and found that there is a significant direct effect of environmental management variables on firm value. Improved environmental management by the company is proven to increase the value of the company directly. This paper found that, not only does an increase in stakeholder trust happen when a company increases its environmental awareness, but there is also an increase in the financial aspects of the company.
KW - Environmental Management
KW - Environmental Performance
KW - Financial Performance
KW - Firm Value
UR - http://www.scopus.com/inward/record.url?scp=85099957231&partnerID=8YFLogxK
U2 - 10.13106/jafeb.2021.vol8.no1.687
DO - 10.13106/jafeb.2021.vol8.no1.687
M3 - Article
AN - SCOPUS:85099957231
SN - 2288-4637
VL - 8
SP - 687
EP - 696
JO - Journal of Asian Finance, Economics and Business
JF - Journal of Asian Finance, Economics and Business
IS - 1
ER -